Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

Sri Lanka News
Forum Disclaimer

The information contained in this forum have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein.

www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever.

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

You are not connected. Please login or register

Sri Lanka Equity Forum » Political and Socio-Economic Analysis »  IMF deal will ease Sri Lanka’s financing pressure: Moody’s

IMF deal will ease Sri Lanka’s financing pressure: Moody’s

View previous topic View next topic Go down  Message [Page 1 of 1]

VALUEPICK

avatar
Expert
Expert
http://www.economynext.com/IMF_deal_will_ease_Sri_Lanka%E2%80%99s_financing_pressure__Moody%E2%80%99s-3-4850-1.html

ECONOMYNEXT – Sri Lanka’s deal with the International Monetary Fund to get a loan of 1.5 billion US dollars will “ease immediate financing pressure” and has the potential to improve the island’s credit profile, Moody’s Investors Service said. 

The rating agency said the agreement under IMF’s Extended Fund Facility comes as Sri Lanka’s sovereign credit profile is increasingly under pressure from its large fiscal deficits, high debt levels and poor debt affordability.  

“If the program supports Sri Lankan authorities' efforts to boost tax revenues and better manage state owned enterprises, it would address constraints on economic growth and reduce fiscal imbalances, thus improving the sovereign's credit profile,” said Marie Diron, Senior Vice President, Sovereign Risk Group, Moody’s Investors Service.

“However, we expect bumps in the fiscal consolidation path due to difficulties in implementing revenue raising measures and the possible crystallization of some contingent liabilities,” said Diron, Moody’s lead sovereign analyst for Sri Lanka.

Sri Lanka’s agreement with the IMF will have three benefits for Sri Lanka’s external financing profile, she said in a statement. 

“First, program disbursements together with  forthcoming multilateral and bilateral loans will provide external liquidity to ease immediate financing pressures. 

“It could reverse the decline in official foreign-exchange reserves and reduce Sri Lanka’s vulnerability to a sudden stop in capital inflows,” she said.

“Second, the financing will likely be at more favorable terms than Sri Lanka can avail of through the market, which alleviates debt servicing cost pressures. 

“Third, if the agreement restores investor confidence in Sri Lanka’s policy framework,  it could ultimately support more stable private external inflows, such as Foreign Direct Investment.” 
(Colombo/April 29 2016)

View previous topic View next topic Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum